If you're operating under the assumption that the prevailing momentum in bond markets is sideways for the time being, today offered few surprises. In fact, it barely offered anything interesting at all. The only significant item on the calendar was the 10yr Treasury auction. These can occasionally move markets, but when that happens, they typically serve to suggest an "adjustment" to prevailing levels as opposed to the jumping-off point for new momentum. Today's reaction was by the book in that regard. A moderately weaker auction resulted in just enough weakness to be noticed. That said, it wasn't enough to push bonds into negative territory on the day. In the bigger picture, it left today looking like one of the narrowest trading ranges of the year, and at levels most…(read more)